REVIEWER IN BUSINESS FINANCE 15.

Bonds (Fixed Income)- types of investments

1. Shares in a company - is an investment show the advantage of knowing periodic

2. Spending money - is not a key to saving money payments for a certain period of time.

3. Have money available to lend to friends - is NOT 16. Insurance - types of investments show the

one of the three basic reasons for saving money. advantage of giving the insured individual/entity

4. The following is the reason why people do not the cash/capital.

save money, they lack focus, they lack discipline 17. Currencies - types of investments show the

and they do not live on a budget. advantage of useful as a medium of exchange

5. Business area lot - the correct real estate which trades 24-hours a day and must be closely

investment? monitored.

6. Debt - Bobby borrowed money from the bank to 18. Real Estate - types of investments show the

buy a new house. This problem is known as a advantage of can be a source of rental income

debt. disadvantages of huge capital needed.

7. Interest - The money that was paid back to me 19. Stocks - investment signifies ownership in a

on top of the loan corporation.

8. Saving - I have been setting aside P100 a month 20. Mutual Funds - investment is made up of a pool

for my children to have money to go to college. of funds collected from many investors.

9. Pay Taxes - Filing a tax return by the deadline 21. Liquidity risk - an investment fund that pools

will avoid the payment of costly penalties. money from many investors particularly to

10. Assess your financial situation - when you are purchase securities.

managing personal finance in money 22. Market risk - risk arises due to changes in

management sound practices in determining demand and supply, risk perception

one's net worth. 23. Business risk-risk relates to strikes, lawsuits,

11. Stocks- a type of investment that shows company management, marketing strategies

unlimited upside advantages and disadvantages 24. Default risk - kind of risk a lending company is

of no guaranteed returns. facing

12. Mutual Funds - investment types imply the 25. Purchasing power risk - risk is associated with

disadvantage of Paying management fees inflation

13. Bank Deposits - types of investment signify the 26. Financial risk - risk is associated with the capital

advantage of knowing income based on the structure of the firm

outstanding principal and current interest rate. 27. Interest rate risk - risk is the uncertainty of the

14. Unit Investment trust funds (UITF) - types of future value market value and size of future

investments show the advantage of no entry and income caused by fluctuations in the general

management fees and disadvantages of No level of interest.

shareholder rights
28. Systematic Risk -kind of risk usually arises out of
external and uncontrollable factors
29. Unsystematic Risk - kind of risk usually arises
out of internal and controllable factors related to
the operation of a business
30. Standard Deviation -statistical tool is
appropriate to measure the variability of a
probability of distribution around its expected
value.
31. Personal Finance- the utilization of money
usually involves financial decisions and activities
of an individual including budgeting, insurance,
mortgage planning, and savings.
32. Income - the money that you receive for
mowing the lawn, babysitting.
33. Avoid credit card debts - Commit yourself to
becoming debt-free, use your cash most of the
time.
34. Be found wise - Allocate your financial resources
to important things, investments and have a
contingency fund.
35. Ensure your needs, not your wants - there are
saying that living frugally is not punishment,
especially during this pandemic the term
"essential" is more meaningful.
36. More things will not make you happy- "Money
can't buy happiness" is one of the best quotes.
37. Determine net vs. gross - Maria is an employee
of BPO in Manila his gross salary is 45,000 a
month after deducting the allowable deductions
and loan the remaining amount of his salary is
15,000.
38. Have financial independence - Mr. Villar Kwarta
is one of the richest men in their province, he
uses his cash most of the time and has no debts
at all.
39. Have an emergency fund - Save until it's safe to
summit is one of the tips to develop good
spending and saving Habits.
40. Automate everything - Building systematic
wealth and focusing on your regular obligations
is very important to avoid late fees and other
charges.
41. Data gathering - personal financial planning
process for this situation "Dina interviewed her
mother to know how much savings she has and
her current sources of income".
42. Objective setting - personal financial planning
process for this situation "Maybelline's mother's
aiming to earn 1 million pesos after 10 years to
purchase a farm lot in their province".
43. Plan implementation - personal financial
planning process for this situation "After 10
years Maybelline's mother executes her plan of
purchasing a farm lot in their province.
44. Plan Monitoring - personal financial planning
process for this situation "After the acquisition
of the farm lot, Maybelline's mother tries to
evaluate the market situation if it is good to
establish a livestock business on their farm",